Top 5 Trades of Larry Robbins' Firm in the 1st Quarter

Glenview Capital Management reports quarterly portfolio

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Jun 02, 2022
Summary
  • Firm boosts holdings in Fiserv, Cigna and US Foods Holding Corp.
  • Trims stakes in McKesson and Bausch Health Companies.
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Glenview Capital Management, the firm founded by

Larry Robbins (Trades, Portfolio), disclosed in a regulatory filing that its top five trades during the first quarter included boosts to its holdings of Fiserv Inc. (FISV, Financial), Cigna Corp. (CI, Financial) and US Foods Holding Corp. (USFD, Financial) and reductions to its positions in McKesson Corp. (MCK, Financial) and Bausch Health Companies Inc. (BHC, Financial).

The New York-based firm seeks long-term capital appreciation through an intense focus on deep fundamental research and individual security selection. Glenview splits its assets into long-and-short fund Glenview Funds and a more concentrated Glenview Opportunity Funds.

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As of March, the fund’s $4.94 billion 13F equality portfolio contains 60 stocks, with eight new positions and a quarterly turnover ratio of 22%. The top three sectors in terms of weight are health care, technology and consumer cyclical, representing 50.67%, 13.91% and 9.91% of the equity portfolio.

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Investors should be aware that 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.

Fiserv

The firm invested in 1,643,595 shares of Fiserv (

FISV, Financial), expanding the position by 329.24% and its equity portfolio by 3.37%.

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Shares of Fiserv averaged $101.22 during the first quarter; the stock is modestly undervalued based on Thursday’s price-to-GF Value ratio of 0.77.

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The Brookfield, Wisconsin-based payment processing company has a GF Score of 92 out of 100 based on a GF Value rank of 10 out of 10, a rank of 9 out of 10 for profitability and growth, a momentum rank of 8 out of 10 and a financial strength rank of 4 out of 10.

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Other gurus with holdings in Fiserv include Dodge & Cox, ValueAct Holdings LP and

Seth Klarman (Trades, Portfolio)’s Baupost Group.

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Cigna

Glenview purchased 486,463 shares of Cigna (

CI, Financial), boosting the position by 43.84% and its equity portfolio by 2.36%.

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Shares of Cigna averaged $234.16 during the first quarter; the stock is fairly valued based on Thursday’s price-to-GF Value ratio of 0.98.

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The Bloomfield, Connecticut-based insurance company has a GF Score of 90 out of 100 based on a growth rank of 10 out of 10, a momentum rank of 9 out of 10, a profitability rank of 7 out of 10, a GF Value rank of 6 out of 10 and a financial strength rank of 5 out of 10.

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Other gurus with holdings in Cigna include Dodge & Cox and

Chris Davis (Trades, Portfolio)’ Davis Selected Advisors.

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US Foods Holding

The firm purchased 2,800,755 shares of US Foods Holding (

USFD, Financial), boosting the position by 172.98% and its equity portfolio by 2.14%.

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Shares of US Foods Holding averaged $36.49 during the first quarter; the stock is modestly undervalued based on Thursday’s price-to-GF Value ratio of 0.75.

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The Rosemont, Illinois-based food service distribution company has a GF Score of 79 out of 100: Although the company has a GF Value rank of 10 out of 10 and a momentum rank of 9 out of 10, US Food Holding’s financial strength, profitability and growth rank between 5 and 6 out of 10.

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McKesson

The firm sold 603,811 shares of McKesson (

MCK, Financial), slicing 39.21% of the position and 3.20% of its equity portfolio.

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Shares of McKesson averaged $271.69 during the first quarter; the stock is significantly overvalued based on Thursday’s price-to-GF Value ratio of 1.40.

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The Irving, Texas-based pharmaceutical wholesale company has a GF Score of 70 out of 100: Although the company has a profitability rank of 8 out of 10, a financial strength rank of 7 out of 10 and a growth rank of 6 out of 10, McKesson has a momentum rank of just 3 out of 10 and a GF Value rank of just 1 out of 10.

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Bausch Health Companies

The firm sold 3,245,486 shares of Bausch Health Companies (

BHC, Financial), trimming 25.96% of the position and 1.91% of its equity portfolio.

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Although shares of Bausch averaged $24.48 during the first quarter, the stock traded just around $9.63 on Thursday. The GF Value line listed the stock as a possible value trap based on Thursday’s price-to-GF Value of 0.4.

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The Laval, Quebec-based pharmaceutical company has a GF Score of 68 out of 100 based on a profitability rank of 6 out of 10, a momentum rank of 5 out of 10, a financial strength rank of 3 out of 10 and a rank of 4 out of 10 for growth and GF Value.

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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